Health Lobbyists Call For Higher Tax On Wine In Australia

The Foundation for Alcohol Research and Education, or FARE, urged the government to impose a higher tax rate on alcoholic beverages through FARE’s commissioned model.

According to The Huffington Post, the new tax model seeks to rework the current tax framework, which would lead to a 235% surge in prices for domestic cask wine. Further, the proposed model would also cause bottled wine prices to climb 100%.

Bold Flavour

Several health organisations and civic groups lobbying against harmful alcohol-related incidents have praised the FARE’s initiative.

John Crozier, National Alliance for Action on Alcohol co-chairman, said the country’s present taxation system for alcoholic products favours the beverage industry over the risks and economic implications of instances such as drunk driving caused by alcohol.

In a separate report by The Sydney Morning Herald, the FARE touted its tax model as a generator of economic growth by pumping A$2.9 billion per year.

Wine Tasting

The FARE specifically targeted wine on its proposal, saying that it only accounts 15% of the collected taxes even if wine accounts for 40% of alcohol consumption. That has been due to the present tax system basing the rate on prices instead of volume.

FARE CEO Michael Thorn echoed Crozier’s belief on reforming the tax model for wine and other alcoholic drinks. Thorn suggested that the proposed framework would not only discourage consumption, but also limit the number of dangers among young drinkers and those prone to do harmful activities when under the influence.

The proposed changes could have a dire impact on how businesses operate in major cities, including wine bars in Brisbane, Melbourne, and Sydney. Digital bar tab Clipp ranked Brisbane with the most expensive price for wine based on a per-glass serving at A$9 during the months of January and February of this year. However, the cost of beer in the city was the cheapest at A$5.50 in comparison to Sydney’s average price of A$6.60.

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